The value of auto insurance
cannot be stressed enough. If you are an uninsured driver involved in
an accident, you may face thousands – possibly millions – of dollars in
expenses, depending on the severity of the situation.
So you’ve purchased auto insurance. That’s
good. Even more important, however, is knowing what that auto insurance
covers if you are involved in a wreck or find your automobile broken
into.
The basics of auto insurance include liability, property, medical and under/uninsured motorist coverage.
Liability coverage pays for bodily injury or
property damage claims to those you are legally responsible for. This
coverage takes care of the damage you cause to someone else or his or
her property.
Property coverage compensates for damage to or the theft of your car. Two types of property coverage include collision and comprehensive.
Medical coverage
is responsible for the treatment of injuries to the driver and
passengers of the policyholder’s car. Coverage is provided regardless of
whether the individual is a passenger or struck as a pedestrian.
Uninsured motorist coverage reimburses you if
you are hit by an uninsured driver. Underinsured motorist coverage
provides compensation if the party at fault does not have adequate
coverage to pay for your entire loss.
